11750-11800 to act as a supply zone: Angel Broking

Derivatives view by Ms. Sneha Seth (Derivatives Analyst, Angel Broking):

"The June series had no major triggers, we saw index consolidating for the first three weeks and then some respite was seen in the final week to conclude the series tad above 11800. Despite some weaknesses in the initial part of the series, we hardly saw any relevant selling in the indices. We believe the majority of the positions formed in Nifty and BankNifty are on the long side.

Rollovers in Nifty during the day jumped up to 70%, which is in line to the 3-month averages. This suggests that long formed in June series have been rolled over to next series. As far as FIIs activities are concerned, they added shorts in index futures resulting their 'Long Short Ratio' declining from 60% to 53%. Simultaneously, they were net buyers in stock futures with a decent margin. In the coming weekly series, 11800 put and 12000 call options are attracting the trader's attention. Considering the expiry weeks development, we expect an extension of recent rally beyond 12000."

Source : Equity Bulls

Keywords